The Battle for the Southern Mindanao Ports After The War And Before The Era of RORO Liners

Discussing this topic, the author wishes to clarify that the discussion will be limited to the period after World War II. There are not enough research materials yet before the war and in that earlier period Southern Mindanao was not yet that economically important to the country since the great wave of migration to the region only happened starting in the 1950’s and then peaking in the 1960’s and the 1970’s.

Talking of Southern Mindanao ports, these consisted mainly of Davao, General Santos (or Dadiangas) and Cotabato (which is actually Parang or Polloc port located in another town) and to some extent also Pagadian and Kabasalan in earlier times and also Mati and Bislig. Since ships generally used the western approach, inadvertently Zamboanga port will be included in this since all ships to Southern Mindanao port using the western approach will use that as an intermediate stop since it just lies along the route and it has a good passenger and cargo volume.

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Gorio Belen research in the National Library

After World War II, shipping to Southern Mindanao boomed because it was the “new frontier” of the country. There was great migration by Christians from other parts of the country and this was encouraged and supported by the government to ease the “land pressure” in Luzon and Visayas which was the fuel then for the land unrest (read: Pambansang Kilusan ng Magbubukid, Sakdalista movement, Hukbalahap, etc.). The land of Mindanao was being opened through the building of roads and the bounty of the land and the forests were being exploited (without asking the say-so of the native peoples and that fueled the unrest of the latter decades; the Luzon land unrest was “solved” to be replaced by Mindanao unrest and war – what an irony and tragedy!). And so people and goods needed to be transported and in such a situation where “ships come where there is cargo” there was a battle for the Southern Mindanao ports among the local shipping companies. Davao was the primary route and port of Southern Mindanao and almost invariably the Davao ships will also drop anchor in Dadiangas (General Santos City).

At the outset, it was Compania Maritima which led the pack to Southern Mindanao after World War II as she was the biggest liner shipping company then with the most ships, half of which were big by local standards (that means a length of about 100 meters). The company possessed ex-“C1-M-AV1” surplus ships as compensation by the US Government for their ships lost during the war and also big cargo-passenger ships from Europe while the competition had no better than the small ex-“FS” ships from the US Army which have to seek shelter when the seas begin to roil.

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Gorio Belen research in the National Library

Among the Compania Maritima competitors to the Southern Mindanao ports in the late 1940’s and early 1950’s were Philippine Steam and Navigation Company (PSNC), Manila Steamship Company, De la Rama Steamship, William Lines Inc. and Escano Lines. Most of the liner shipping companies of the day then shirked from Southern Mindanao routes because it was taxing on the fleet as the ships needed two weeks for the entire voyage. So just to be able to offer a weekly schedule, two ships of the fleet must be devoted to a Southern Mindanao route.

It was Philippine Steam and Navigation Company (PSNC), being backed by Everett Steamship of the United States, which was more competitive against Compania Maritima as it also had ex-“C1-M-AV1” and ex-“Type N3” ships. PSNC was a venture between Everett Steamship and Aboitiz Shipping (and later with the end of “Parity Rights”, it passed on to the latter). Manila Steamship Co. was competitive, too since it also had a big fleet. However, this company quit shipping after the explosion and fire that hit their flagship “Mayon” in 1955. Meanwhile, De la Rama Steamship even quit earlier to concentrate on international shipping and being an agents after some local issues.

The year that Manila Steamship quit shipping, the new liner company Carlos A. Go Thong & Company joined the Southern Mindanao battle, too. In the mid-1950’s, with some shake-out in the shipping industry, there were less competitors and ships in this decade (because some really old ships have already quit along with some very small ones). It should be noted, however, that there were ocean-going liners that were originating from Southern Mindanao that goes to Manila first before proceeding to Japan and the USA. Some of those that provided that kind of service were Everett Steamship and Compania Maritima.

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Gorio Belen research in the National Library

In the 1960’s, passenger-cargo ships from Europe that were bigger than the ex-“FS” ships began to arrive in the Philippines and many of these were fielded to the Southern Mindanao routes. Among the users of that type were Go Thong and William Lines. Go Thong was also able to acquire the big World War II surplus “C1-A” ships like the “Manila Bay” and “Subic Bay”. Compania Maritima, however, bought brand-new liners and chartered big reparations cargo-passenger ships from the government-owned National Development Corporation (NDC) and so they held on to their lead in the Southern Mindanao routes in this decade. Meanwhile, Everett/PSNC was not far behind and they even used in Southern Mindanao their new liners from Japan, the “Elcano” and the “Legazpi”. Additionally, there was a new entrant in the late 1960’s, the ambitious Sweet Lines which was one of the beneficiaries of the quitting of General Shipping Company of local routes (the other was Aboitiz Shipping Corporation).

At the start of the 1970’s, Compania Maritima was still ruling the Southern Mindanao routes. But several very interesting developments happened in this decade. First, the big Go Thong/Universal Shipping which already exceeded Compania Maritima in size had broken into three shipping companies and Sulpicio Lines Incorporated, Carlos A. Gothong Lines Incorporated and Lorenzo Shipping Corporation emerged (until 1979 the operation of the latter two were joint). In a few years time, however, Sulpicio Lines grew fast and proved to be a strong competitor. In this decade, it was already slowly becoming obvious that Compania Maritima was losing steam especially as they regularly lost ships in storms. William Lines then was in a race with Sulpicio Lines to dislodge Compania Maritima from its perch. Everett Steamship meanwhile bowed out because of the end of “Parity Rights” of the Americans (and thus they are no longer allowed to do business as a Philippine “national”) and PSNC (their partnership with the Aboitizes) was merged with Aboitiz Shipping Corporation and the latter became the surviving entity. But with no new ships, Aboitiz Shipping Corporation bowed out of Southern Mindanao liner service. However, the combined Lorenzo Shipping Corporation and Carlos A. Gothong Shipping Lines (CAGLI) and Sweet Lines Inc. were still competing heavily in the Southern Mindanao routes in the 1970’s.

Two very important developments happened before the end of the 1970’s. One, containerization began and this changed the game of shipping. Where before it was just practically the liners that carried the cargo, now the carriers split into two, the container ships and the liners. Subsequently, the passenger capacity of the liners grew as they no longer have to devote a lot of space for cargo. By this time, the massive migration of Christians to Southern Mindanao has also boomed its population and consequently more need to travel.

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Gorio Belen research in the National Library

The second development was the introduction of fast cruiser liners that call on just one intermediate port (before a liner to Davao will usually call first in Cebu, Tagbilaran, a northern Mindanao port maybe, Zamboanga definitely and Dadiangas. So where before 10-knot ships like the ex-”FS” and ex-”C1-M-AV1” ships will take two weeks to complete an entire voyage and the faster ex-European passenger-cargo ships cycles every 10 or 11 days, the new fast cruisers complete the voyage in just a week. By my definition, fast cruisers of this period were the liners capable then of 18 knots. Usually, these were not converted cargo-passenger ships from other countries (these were fast cruisers even in Japan, usually). These were also luxury liners in the local parlance and one key feature of that is the availability of air-conditioning. With that truly luxurious suites and cabins became possible.

The fast “Dona Ana” (later “Dona Marilyn”) of Sulpicio Lines which came in 1976 tried to change the game by just having one intermediate port call, in Cebu. William Lines responded with the even faster cruiser “Manila City” (the second) in 1976 which only had Zamboanga as its intermediate port. With their speed and the use of just one intermediate port, the “Dona Ana” and “Manila City” was able maintain a weekly schedule. Although the luxurious flagship “Filipinas” of Compania Maritima was also fast at 17 knots, she dropped by many intermediate ports and so she cannot maintain a weekly sailing. Compania Maritima never dropped the old style of many intermediate ports.

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Photo credits: Times Journal and Gorio Belen

Gothong+Lorenzo was not able to respond well to this challenge (though they tried) as they had no true fast cruiser liners. So, they had to use two ships for a route to maintain a weekly sailing or three ships to maintain a cycle of every 10 days. Sweet Lines also tried but like Gothong+Lorenzo they also have no fast cruisers assigned to Southern Mindanao (they had two though in Cebu, the “Sweet Faith” and the “Sweet Home”). Compania Maritima and Sweet Lines were the users of three ships to the Davao route to be able to cycle a ship every 10 days. Aboitiz Shipping, meanwhile, with no new ships simply dropped out of liner shipping to Southern Mindanao and just concentrated on container shipping.

Although William Lines and Sulpicio Lines already had fast cruiser liners to Southern Mindanao they also still used their old passenger-cargo ships to the region in the late 1970’s in conjunction with their fast cruisers liners. So with them the passengers have a choice of the fast or the slow which was also less luxurious. Fares also differed, of course.

In the container segment of shipping, the battle was toe-to-toe. Aboitiz Shipping rolled out the Aboitiz Concarriers, William Lines had the Wilcons, Sulpicio Lines fielded the Sulcons (Sulpicio Container) and later Lorenzo Shipping sailed the Lorcons (Lorenzo Container). Many of the ships mentioned were once general cargo ships converted into container ships. [The later series Aboitiz container ships were named Superconcarriers and Megaconcarriers.] Lorenzo Shipping then split with Carlos A. Gothong Lines Inc. and the latter then quit Southern Mindanao routes to concentrate on the Visayas-Mindanao routes. [Later, Lorenzo Shipping quit shipping altogether and sold out to the Magsaysay group before they were reborn as the Oceanic Container Lines.]

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Gorio Belen research in the National Library

In passenger liners, William Lines and Sulpicio Lines continued to battle in the Southern Mindanao ports in the 1980’s using fast cruiser liners. Sulpicio Lines had the edge as they had more fast cruiser liners [William Lines still had to make do with their graying former European passenger-cargo ships]. For a while until they quit in 1984, Compania Maritima was battling Sulpicio Lines more than toe-to-toe. After all, Southern Mindanao was the area of concentration of Compania Maritima and in Davao they even have their own port, the MINTERBRO port. Compania Maritima concentrated their best liners, the “Filipinas”, “Visayas” and “Mindanao” plus their passenger-cargo ships “Leyte Gulf” and “Dadiangas” in the General Santos/Davao route before the company’s life expired. While the three were battling, the other liner companies were not able to respond except for Sea Transport Co. and Solid Shipping Lines which were not operating passenger liners. One independent liner company, the Northern Lines Inc. which had routes to Southern Mindanao also quit at about the same time of Compania Maritima at the height of the political and financial crisis leading to the mid-1980’s.

Before the era of RORO liners, there were already more container ships to Southern Mindanao than passenger liners. That how strong was the growth of that new paradigm. This new dominant paradigm even forced the fast cruisers to carry container vans atop their cargo holds as that was already the demand of the shippers and traders.

In the 1980’s before the advent of RORO liners starting in 1983 there were actually only a few fast cruiser liners doing the Southern Mindanao routes. Among those was the “Dona Ana”, the pioneer fast cruiser of Sulpicio Lines to Davao. This ship was later pulled out to replace “Don Sulpicio” in the Manila-Cebu route as the ship caught fire and she was renamed to “Dona Marilyn”. However, the fast cruisers “Don Enrique” (the later “Davao Princess” and “Iloilo Princess” and “Don Eusebio” (the later “Dipolog Princess”) alternated in the Manila-Cebu-Davao route. In 1981, when the “Philippine Princess” came, “Dona Marilyn” was reassigned to the Cotabato route. She was the first fast cruiser liner in that route.

Don Sulpicio, Dona Ana and Don Ricardo

Photo by Jon Uy Saulog

On another noteworthy trivia and clarification, Sulpicio Lines also fielded the third “Don Carlos” in the General Santos route in 1977. This ferry was a former vehicle carrier in Japan and so she had a cargo deck and a ramp. However, she was not used as a RORO ship. The ramps were just used to ease the loading of livestock from Gensan. This city sends a lot of those live commodities to Manila. She was actually a “WOWO” ship (Walk on, Walk Off). However, she also takes in heavy equipment and trucks bound for Gensan dealers. So technically “Don Carlos” was the first RORO to Southern Mindanao. But she did not use container vans.

For William Lines, the second “Manila City” (the first “Manila City” was an ex-”FS” ship) was their only fast cruiser to Southern Mindanao for a long time in this decade. Most of the passenger ships they were using in the region were former European passenger-cargo ships like what Sweet Lines were using (the company was also using the “Sweet Grace” to Southern Mindanao which was a brand-new liner in 1968 but was not that fast). Approaching the end of the decade only three national shipping companies were left sailing liners to Southern Mindanao – Sulpicio Lines, William Lines and Sweet Lines. One of the reasons for that was the crisis spawned by the Aquino assassination halved the number of liner companies in the Philippines. It was not because the traffic to Southern Mindanao dropped considerably. In container shipping to Southern Mindanao before the RORO liners came there were six players – Aboitiz Shipping Corporation, William Lines, Sulpicio Lines, Lorenzo Shipping Corporation, Sea Transport Company and Solid Shipping Lines.

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MV Don Carlos (Gorio Belen research in the National Library

In 1983, a new paradigm arrived in the Southern Mindanao routes and it ushered a new era. These are the RORO (or ROPAX) liners which were even bigger and just as fast as the fast cruiser liners. And they can carry more container vans than the fast cruisers. Later, RORO liners were even faster as they can already sail at 20 knots. Can anyone hazard a guess which was the first RORO liner of Southern Mindanao?

I will discuss the era of RORO liners in Southern Mindanao in a subsequent article (as I do not want this article to be too long and unwieldy). With that, it will be a discussion of the recent history of the Southern Mindanao routes and liners.

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Container Ships Also Sink Our Liners

In the past, before 1980, there was no conflict between the our liners and the container ships. First, container ships did not exist before the late 1970’s. Second, before that time, general cargo ships were not many as it is our liners that were mainly carrying the inter-island cargo that should be transported fast and were not in bulk. That was the reason why even though our production and the number of people were not yet as high like today, there were so many liners existing with as high as 90 liners at its very peak.

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Gorio Belen research in the National Library

In the early 1970’s, the Sea Transport Company came into existence. What was notable for this new company is they offered regular express cargo service to Mindanao which means a direct service and aside from loose cargo, their ships were able to carry small container vans which were non-standard as in they were offering 8-foot containers which they themselves designed (it was rectangular in shape). In due time, they also shifted to standard container vans and they fielded pure container carriers.

In 1976, Aboitiz Shipping Corporation converted one of their general cargo ships, the P. Aboitiz into a container carrier. Conversion like this was not difficult because only some internal structures need to be modified so a container van can be slot in and that also means modifying the holds and the hatches. The grabs of the booms also have to be modified by a bit so it can handle a container van.

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Gorio Belen research in the National Library

In 1978, containerization was already in full swing when Aboitiz Shipping Corporation added more container ships and William Lines Incorporated followed suit. The next year, in 1979, Sulpicio Lines Incorporated also joined the bandwagon to be followed in the next year by Lorenzo Shipping Corporation which had already split from its merger with Carlos A. Gothong Lines Inc (CAGLI). Negros Navigation Company also joined this new paradigm in 1980. In 1981, Sweet Lines Incorporated also followed suit but they used their old company name Central Shipping Corporation. Among the major liner companies then, it was only Compania Maritima which did not join this new paradigm.

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Gorio Belen research in the National Library

These new container services offered direct sailings as in there were no intermediate ports. With direct service, the container ships might be a little slower than the liners (except for the fast cruisers) but their transit times were not worse than the liners (except to Cebu) because they don’t lose time in an intermediate port or ports. With the speed, convenience, security (no pilferage), lack of damage and contamination, soon the shippers were already shifting en masse to the new container services.

In the liner crisis of 1980 when many liners were deactivated and laid up, it seems the main cause of that was the emergence and immediate success of the container ships and container shipping. Maybe the liners suddenly found they don’t have enough cargo and hence they can’t maintain the old sailing schedule and from the outside it looked like that suddenly there was a “surplus” of bottoms (actually the liners complained of that).

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Gorio Belen research in the National Library

In December 1979, the first RORO liner, the Dona Virginia of William Lines came. This RORO and those that came after her were capable of carrying container vans especially the XEU or 10-foot container vans that can be loaded aboard by the big forklifts. Soon even the fast cruiser liners were also carrying container vans atop their cargo holds especially at the bow of the ship. Some can also carry container vans on a platform in the stern.

Locally, I did not see a new paradigm take hold as fast as container shipping. The ROROs even took longer to be the new paradigm. In containerization, there was even a rush to convert general cargo ships into container ships. All the “new” container ship of Lorenzo Shipping Corporation were converts at the start. The other container shipping companies bought general cargo ships from Japan and converted them into container carriers. Our first container ships looked like general cargo ship unlike the modern container ship which does not look like general cargo ships (and nor can they handle loose cargo).

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In just a little over a year William Lines had 5 container ships (Gorio Belen research in the National Library)

The emergence of the RORO liners even pushed containerization faster as that new kind of ferry is ready-made not only for vehicles or rolling cargo but also for container vans, wheeled in atop chassis (which means atop trailers) or not (if not wheeled then big forklifts “wheeled” them in). There were not yet reach stackers in the early years of our containerization to handle the container vans.

In the 1980’s and the 1990’s, the liners can still hold off the container ships. The reason was there were no budget airlines yet (Philippine Airlines fares then were really stiff) and there were no intermodal buses yet in the bulk of the islands (it was only strong in Eastern Visayas, their pioneer area). And liners can still pack in the passengers (even up to “overloading” or overbooking point) because people has already learned how to travel and there was a great push for migration to Metro Manila (which later led to the overcrowding of this metropolis).

However, when budget airlines and the intermodal buses came in droves, the passengers of the liners dropped. The 2,000 to 3,000 passenger capacity slowly became “too big” and hence the national shipping companies no longer fielded liners with capacities such as this in the new millennium. Aboitiz Transport System (ATS) also tried to reduce passenger capacity and increase cargo capacity by converting some of their liners to have two decks for rolling cargo like what they did in SuperFerry 12, SuperFerry 9 and SuperFerry 2.

Superferry 12

Photo by Edison Sy

Can the liners compete with container ships when the passenger demand dipped? The answer is a plain “No way”. Liners usually have more than three times the horsepower of a local container ship (and it is single-engined which means less spare parts are needed) and yet the local container ship usually have three times the container capacity of a RORO liner. This even became more pronounced when the regime of high oil prices came in the first decade of this millennium. Per fuel prices alone, the container ships can carry each container van much cheaper than what a liner can.

Container vans also do not need the amenities needed by the passengers. Moreover, it does not need the service expected of the passengers which need to be fed and be given more than decent accommodations plus some entertainment. Because of that, the crewing needs of a liner is far higher than that of a container ship. All of those means more expense of the part of the liner company. Besides, a RORO liner is more expensive than a container ship for the same size and its insurance is higher.

Ever since the 1980’s, even when the passenger demand was still great, the national shipping companies were earning more from cargo than their passengers. That is true even today when 2GO admits that almost 70% of their revenues are from cargo (and to think under their roof is SuperCat which widens the passenger revenues). Definitely their investment for liners is greater than their cargo ships. Maybe it was only loyalty to their passengers and passenger shipping why they were not quitting this segment. Maybe it is also because of inertia which means just keeping doing the old things.

Lorcon Dumaguete assisted by tugs

If we look at the recent years we can see that for every liner acquired at least 7 container ships were acquired and this is even a conservative estimate. If we look at the last 10 years starting from 2006, only 11 liners came to our shores and that includes the 3 Cebu Ferries, two of which are still used as overnight ships although already converted into small liners. Meanwhile, MARINA registered 80 or more newly-arrived container ships in the same period. These are the container ships of Oceanic Container Lines, Sulpicio Lines/Philippine Span Asia Carrier Corporation, Lorenzo Shipping Corporation, NMC Container Lines, Solid Shipping Lines, Negros Navigation/Caprotec Corporation/2GO, MCC Transport Philippines (MCCTP), Moreta Shipping Lines, Meridian Cargo Forwarders, Seaview Cargo Shipping Corporation, Escano Lines/Loadstar Shipping Company and West Ocean Lines and Transport acquired in the last ten years. Now how many container lines is that compared to a sole passenger liner company?

There are few liners sailing now and all are under just one company which is 2GO (since Romblon Shipping Lines has already quit). Meanwhile, container ships are still mushrooming and more container shipping companies are joining the field. Even 20 years ago there were already more container ships than liners. Now the container ships are already outstripping the liners in number. And the trend holds true year after year.

The question is why? Well, the simple answer is the shipping companies won’t invest in liners as it does not make sense. More revenues can be earned from container shipping at less investment with less hassles from regulations and supply needs (like the food needed by the passengers). So why would they enter passenger liner shipping? Better “pets” like containers vans rather than people like the passengers who can raise a ruckus and if the ship sinks then goodbye to all the advertising and service spent for the goodwill. If a cargo ship sinks, the uneducated public and the media almost won’t mind at all.

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A Cargo RORO LCT by Asian Shipping Corporation

If cargo is the bread and butter of shipping it will now go to the container lines because they can actually offer the lower shipping rates. If not it will go to the intermodal trucks which has even lower rates. And arriving now recently are the Cargo RORO LCTs which carry container vans (even from Manila) like those of Roble Shipping Incorporated, Ocean Transport and Asian Shipping Corporation. This new paradigm can offer even lower rates than the container ships.

Sometimes it looks like liners are already passe. But I don’t want them to go because I prefer them over planes and the intermodal buses are sometimes too tiring especially those who are no longer young.

Will the liners survive? Now, that is one question I would not like to answer.

The Davao Ports That Handle Foreign Ships

I would have liked to expound on the ports under the Davao PMO. But that would mean tackling all the ports in Davao Region and that is just too many. I also wanted to tackle the ports and wharves of Davao City but I will still be burgeoned with many ports and wharves that basically handle traffic only to Samal island. I thought the best was to focus on one distinguishing mark of the Davao ports and that characteristic is many of its ports handle foreign vessels. Among the combined ports in the country it is Davao which has the most since about 20 ports here handle foreign ships, some regularly and some occasionally. But this will not be limited to Davao City only but will include ports in Panabo, Tagum, Maco, all in Davao del Norte and Sta. Cruz in Davao del Sur. This is a stretch of ports of about 25-30 miles of almost straight linear distance. Another trait of Davao ports is a significant number of foreign ships that call in Davao dock in two or three different ports trying to fill up more cargo. Senator Bam Aquino filed a bill that became a law allowing that but he was two decades too late and his bill just showed his ignorance of maritime matters.

Handling foreign ships is one thing that became more important in the last several years in Davao. This became more pronounced especially when passenger liners from Manila stopped calling in Davao. To Sulpicio Lines that was force majeure since they were suspended by MARINA (Maritime Industry Authority) from sailing in the aftermath of the capsizing of the MV Princess of the Stars in 2008. For Aboitiz Transport System (ATS), they said “there was not enough cargo” (and after that their competitors were simply too glad to fill up the void created).

The main type of foreign ship that calls on Davao are the regional container ships, otherwise called “feeder ships” abroad. I named it as such since they basically do regional routes especially in Southeast Asia and East Asia. Types like “Panamax”, “Handymax” or “Aframax”, etc. have no meaning in the Philippine context since only the smallest of international container ships call locally, in the main. Not that we are in an out-of-the way route but because that size is just what the size of our economy can muster (yes, we are mainly good only in producing people (and billiards players) and in fact, that is one of our main exports but they don’t ride container ships). Some of the ships that call in Davao goes all the way to Europe so not only regional container ships call in Davao.

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Regional container ships in Sasa Port by Mike Baylon

The second main type of foreign ships that call in Davao are the reefers or refrigerated container ships. These reefers and the regional container ships basically carry the export fruits (Cavendish bananas, broad-shouldered pineapples, solo papayas mainly but that can also include avocado, giant guavas and buko and many others) and export fresh produce (like lettuce, cauliflower and many other high-priced vegetables) grown in Southern Mindanao. Some of the refrigerated container vans loaded here come from as far as Agusan del Norte, Misamis Oriental, Bukidnon, Maguindanao and Lanao del Sur. Actually, almost all kinds of fruits and produce grown in farms and orchards are already exported now like camote, cassava, saging na saba (cardava in Bisaya), other varieties of bananas, mature coconuts, langka and gabi that we sometimes joke here that it seems they also cook ginataan (benignit in Bisaya) abroad now. Or make camote cue, banana cue, turon and ginanggang (https://en.wikipedia.org/wiki/Ginanggang) abroad.

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Reefer by Aris Refugio

The third main type of ship that calls on Davao ports are the tankers (included here are the like-type LPG carriers). Some of these are chemical tankers and they load coconut oil in the many oil mills of Davao. Many of these are oil tankers that bring in fuel to the tanker jetties in Davao (and that is why fuel is cheaper here since many of our fuel is from Singapore). The fourth main type of foreign ships that call in the Davao are the general cargo ships or simply freighters. Some of these bring rice, some are Vietnam ships that load copra meal, some load desiccated coconut. The fifth main type are the bulkers or bulk carriers. However, this type is not that frequent in Davao.

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Bulk Carrier by Aris Refugio

On the average, a total of more than 25 foreign ships call on Davao ports every week for an average of three four ships a day. In container volume, it is actually Davao which is number two in container ship calls ahead of Cebu and Batangas ports but behind Manila port, the national port. What happened is that after our first two main export commodity crops abaca and copra/coconut oil lost in the world markets because of economic shifts (abaca was displaced by nylon and copra/coconut oil lost to other edible oils) it is now fresh fruits and fresh produce (and also canned pineapple) which have taken their place. These are basically loaded in Davao as Southern Mindanao and Bukidnon practically lords it over the other Philippine regions in the production of those export goods as the other regions are still stuck to their traditional crops which are mainly not for export in significant quantity except maybe for the sugar of Negros.

Sasa Port is the main port of Davao. It is a government-owned port and it is the biggest in Davao. It is also the base port of Davao PMO (Port Management Office which is equivalent to a regional division). Sasa Port has a total wharf length of about a kilometer and six or more ships of 80 to 180 meters size range can dock simultaneously and more if the ships are smaller and/or local. Foreign ships, which are conscious of demurrhage are the priority here and there are inducements like crisp foreign bills so they will be given priority in docking. Since Sasa Port has the tendency to exceed its capacity then ships that cannot be accommodated or are displaced are made to anchor off Sta. Ana Port so as not to congest the narrow Pakiputan Strait separating Samal island from Davao.

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Sasa Port by Mike Baylon

One weakness of Sasa Port is the lack of gantry cranes. With that she cannot handle the gearless container ships that are now beginning to appear in Panabo Port. However, Sasa Port has the usual needs of foreign ships: reefer facilities, container yard, marshalling area aside from the usual open storage area. There are also transit sheds and a passenger terminal that is no longer being used. When regional container ships arrive speed is the essence in unloading so aside from their booms the reach stackers are widely used. There are two arrastre firms operating in the port. Sasa Port is due for expansion and renovation but its cost is shrouded in controversy and many local stakeholders and the local government unit of Davao City have formally objected. The administration of President Aquino then seems to be intent in ramming it through but now that plan is dead duck under the current Duterte administration. For sure, the plans will be modified as it was really overpriced.

The two Panabo ports are next in importance to Sasa Port. To an outsider Panabo Port might look to be a single port but they are actually two, the TADECO (Tagum Agricultural Development Company) wharf of the Floirendos and the PACINTER (Pacific International Terminal Services) wharf of Dole-STANFILCO. Together, the two along with minority interests reclaimed part of the sea and built an extension port and yard. This is equipped with gantry cranes and it is called the Davao International Container Terminal (DICT). It is the only port in Southern Mindanao that can handle gearless container ships at the moment and this port is the main handler of the produce of “Banana Country”, the wide flat swath of land in the localities of Panabo, Carmen, Braulio Dujali and Sto. Tomas plus parts of other towns that is dedicated to the propagation of Cavendish bananas. In “Banana Country” there is nothing else to see for kilometers on end but Cavendish bananas.

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Panabo ports (TADECO and Dole-STANFILCO) by Mike Baylon

These ports of Panabo are private ports. The DICT expansion cost only P2.7 billion (and was financed by private banks) and that was the comparison used why the local stakeholders blanch at the quoted price of the proposed expansion and modernization of Sasa Port (well, just adding gantry cranes, cold storage facilities and a little extension will already make it modern). [Of course, there are other and sometimes unspoken issues and projects that are related to this but that should be in another article.] Besides, the Panabo ports are also “Exhibit A” against those who badger the government to build ports for them for free or to pandering politicians who promise to build international ports and terminals just to get votes. If there is really traffic then the private sector will build its own ports rather than wait for government to build the ports for them (after all they will earn, won’t they?). And if the private sector builds the ports it always comes out cheaper than if government had it built (it is a question of corruption, inefficiency and waste). However, though expanded, DICT still lacks docking space many times and so container ships and reefers have to wait.

There is a modern, purpose-built port in Davao that was purposely-built for handling fresh fruits and fresh produce for export. This is the AJMR Port in the northern part of Davao City on the road to Panabo and this port is synonymous with Sumifru or Sumitomo Fruits, the biggest fruit distributor in Japan. Japan is known for having the highest quality requirement in fruits and they pay adequately for that. To meet that requirement, AJMR Port has its own vapor heat treatment (VHT) facility right inside the port, a plastic plant too and a factory for its carton boxes. However, the docking facilities of AJMR Port is rather limited and only two container ships or reefers can dock at the same time in its jetty-like wharf. By the way, AJMR is also classified as an “agro-industrial economic zone” which is similar to a “special economic zone”. That means it is enjoying a lot of perks from the government.

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AJMR Port by Mike Baylon

In importance, the adjacent Craft Haven International Wharf and TEFASCO Port might be next in importance. Craft Haven is also a purpose-built port to handle fresh fruits for export. Formerly, the place was once a shuttered plywood factory. Many of its exports goes west to the Middle East and India which are new markets for Cavendish banana (introduced by “Operation Desert Storm”). Many of its cartons bear the trademarks of Arab brands as well as the famous Unifrutti brands (i.e. “Chiquita”). The operator and agent of Craft Haven have good connections with Muslim planters of Cavendish banana of SOCCSKSARGEN region. The port has cold rooms but compared to AJMR it does not have its own carton box or plastic factories. But wood for making boxes is delivered in the port. The Craft Haven International Wharf can handle up to three ships simultaneouslyvand the “Cala” ships are regulars there. These are ships that trade to Japan and Korea.

I will go next to TEFASCO Port as it is just adjacent. TEFASCO means Terminal Facilities and Services Corporation. They so-famously won a landmark case then against PPA (Philippine Ports Authority) which set the principle that PPA can’t collect fees on ships docking in private ports. TEFASCO mainly docks local ships especially the container ships of Solid Shipping Lines but a few years ago they were able to lure Pacific International Lines (PIL) of Singapore which uses their wharf now to load container vans (these are the container ships with the name “Kota”). They only dock and does not engage in any processing of the fresh fruits and produce as they are not a “clean” port (a no-no in fresh fruits and fresh produce as it leads to contamination). Fertilizers and other contaminants are present in their port but refrigerated vans are practically hermetically-sealed unless Customs comes knocking.

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TEFASCO, Craft Haven and Holcim ports by Aris Refugio

Holcim Port is just adjacent TEFASCO Port and it also handled foreign ships in the last few years when Sasa Port and Panabo Port were experiencing congestion. However, the primary ships that Holcom Port handles are ships that carry cement (naturally!) and these are mainly local ships. Holcim is actually a cement plant (actually the biggest in the Philippines) as many knows. With cement dust (and also coal)  it is not also a “clean” port and so there are no processing facilities there for fresh fruits and fresh produce. It is simply a come and go operation there.

In terms of future growth the Hijo Port in Madaum, Tagum City, capital of Davao del Norte might be next in weight. This port is now a joint venture between ICTSI (International Container Terminals Services Inc.) which is not just an arrastre service anymore but operator of ports in other countries and the Manila International Container Terminal (MICT) and Hijo Plantation with the former in the saddle. ICTSI is developing this port to rival Davao International Container Terminal although in volume they are not yet there. Hijo Plantation is the main user of the port although it is intended to intercept the container vans coming from the north and east of Tagum but the intent has not materialized yet.

I will no longer go one by one with the other ports handling foreign ships as they are relatively minor or can just be bunched together. Universal Robina Corporation (URC) wharf sometimes handle bulk carriers which bring in imported wheat for URC’s need. The frequency of this in every few months or so. Down south in Astorga, Sta. Cruz, Davao del Sur, foreign ships load the products of Franklin Baker Company which is best known for its desiccated coconut which are mainly for export.

 

Meanwhile, Davao City is host to several coconut oil mills like Legaspi Oil, INTERCO, DBCOM and the New Davao Oil Mill. Foreign chemical tankers come to load their products and combined the arrivals are at least a week in frequency or even more frequent, on the average. Additionally, Vietnam freighters come to load their by-product copra meal (an ingredient and protein source for animal feed).

Davao is also home to several petroleum products depots like Chevron, Petron, Phoenix Petroleum and Shell. Aside from local tankers, foreign tankers also come especially those that come from Singapore. In addition, there are also LPG carriers that also come to the Price Gases jetty in Sta. Cruz, Davao del Sur, the Isla LPG Corporation wharf in Davao City aside from the tanker jetties of the petroleum majors and many of these are foreign vessels. The frequency of these foreign tankers and LPG carriers combined might be every week also.

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Tanker jetties, oil depot, Legaspi Oil, URC by Mike Baylon

Once in a while, a foreign ship will also come to Maco Port in Davao del Norte. This port is just near the Hijo Port in Tagum and both are located in the innermost portion of Davao Gulf (which is actually a bay).

And that sums up all the ports of Davao PMO handling foreign vessels. Sasa Port and DICT dominates the handling of the foreign ships. DICT don’t even handle local ships, in fact. The other ports, except the tanker jetties, started handling foreign ships because of the congestion of Sasa Port and the Panabo ports (except Hijo Port which handled their own shipments from the start).

With many ports handling ships, both foreign and local, one unintended benefit was road traffic did not build up so fast in the port areas of Davao unlike in Manila which is dependent on so few ports. Maybe a lesson can be learned here.

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Sasa Port by Mike Baylon

The Start and Impact of Containerization on Local Shipping

Containerization or the use of container vans to transport goods began in the Philippines in 1976, a decade after containerization began to take hold internationally. The new method was started by Aboitiz Shipping Corporation when they converted their 1,992-gross ton general cargo ship “P. Aboitiz” into a container carrier. This was followed by the conversion of their general cargo ship “Sipalay” in 1978. These first two container ships had limited capacity in terms of TEU (Twenty Foot Equivalent Unit) which is the common measure of container capacity that can be carried by container ships but it more than showed the direction of cargo loading in the future. And it also showed that general cargo ships can be converted container carriers.

By 1978 and 1979, containerization was already in full swing in the Philippines when major competitor shipping companies William Lines Inc., Sulpicio Lines Inc. and Lorenzo Shipping Company also embraced the new paradigm and competed. This new wave was also joined at the same time by two other small and new shipping companies, the Sea Transport Company and Solid Shipping Lines. Except for these two, our pioneers in container shipping were passenger liner (which means there are fixed schedules and routes) shipping companies.

The leading liner shipping company then which was Compania Maritima declined to follow suit into containerization along with Gothong Lines while the others like Sweet Lines, Negros Navigation and Hijos de F. Escano followed a little later in the early 1980’s. Gothong Lines, however, was into small ROROs early and these can also load container vans. Sweet Lines later founded a separate cargo-container company, the Central Shipping Company.

Like Compania Maritima, Madrigal Shipping, another old shipping company also did not follow into containerization. The smaller passenger liner companies also did not or were not capable into going to containerization. Among them were Galaxy Lines, N & S Lines, Northern Lines, Bisayan Land Transport, Newport Shipping, Cardinal Shipping, Dacema Lines, Rodrigueza Shipping, etc. Soon all of them were gone from Philippine waters and one reason was that they failed to adapt to the new paradigm and shippers were already demanding for container vans.

Before the advent of container vans, dry cargo were handled bulk or break-bulk. Bulk is when the whole ship is loaded with grains or copra. But bulk shipment is not possible in the passenger-cargo ships then as major parts of the ship is devoted to passengers and its requirements. Along with passengers, the passenger-cargo ships then carried various merchandise as in finished goods from the city like canned goods, “sin” products and construction materials. On the return trip, it would carry farm products like copra, abaca, rice, corn or dried fish. Since it was mixed, it was called break-bulk. It was mainly handled by cargo booms and porters and stowed in the ships’ cargo holds. Since it was mixed and has no containers aside from boxes the handling was long and tedious and it was vulnerable to pilferage and damage by handling and by the weather.

With the coming of container vans the weaknesses of the old way of loading that led to damage and pilferage were minimized by a big degree. Actually, the arranging of the goods was even passed on to the shipper or trader and all the container shipping company had to do was haul aboard the container. The new system needed much less labor (who can be balky at times and disputes with them can lead to delays or intentional damage) than before and the loading is faster because containers can simply be stacked one atop the other. This was difficult with breakbulk because of possible contamination and because the cargo had no containers it was difficulty to simply stack them and this even led to lost cargo spaces.

One initial result of containerization was the need for dedicated container ships as the passenger-cargo ships of that era, the cruisers were not meant for the loading of container vans (although they can carry a few and loaded LOLO). Since our local volume was low, our shipping companies preferred not to order purpose-built container ships. Instead, the discovered path was just to convert general cargo ships into container ships. The needed conversion was actually minimal and since these ships were already equipped with cargo booms then it was easier for everything. Only, the booms needed to be more stout as in it has to have more lifting capacity because of the added weight of the steel of the container van. Container vans were handled LOLO or Lift-On, Lift Off.

With the coming of ROROs with its ramps and car decks starting in 1980, cargo handling became easier. Break-bulk cargo especially the heavier ones can now be handled by the forklifts and transferred to the car decks (which then became cargo decks also but not as cargo holds). Shipping companies have used forklifts before but mainly just in the ports. Now, the first ROROs also carried forklifts in the car decks and the stowing of container vans in the car decks of the ROROs began. These were mainly XEUs (Ten-Foot container vans) which can easily be handled by medium-sized forklifts. Still many of cargoes in the first ROROs were break-bulk.

Some liners of the 1980’s had cargo booms at the front of the ship while having RORO ramps at the stern like the “Zamboanga City” and the “Dona Virginia” of William Lines. It carried container vans at the front of the ship and those were handled LOLO while at the stern they loaded container vans. Actually, some big cruiser liners of the late 1970’s can carry container vans on their upper decks at the stern like the “Don Enrique” and “Don Eusebio” of Sulpicio Lines, the “Cagayan de Oro City” of William Lines and the “Don Claudio” of Negros Navigation”. It was handled LOLO by the cargo booms of those ships.

At the tail end of the 1970’s and at the start of the 1980’s what was prominent was the race of the leading liner shipping companies to acquire general cargo ships and convert it to container ships. Aboitiz Shipping Company was the early leader and they fielded thirteen container ships between 1976 and 1989. Their series was called the “Aboitiz Concarrier” and latter additions were called the “Aboitiz Superconcarrier” and “Aboitiz Megaconcarrier”. William Lines rolled out in the same period eight container ship plus two Cargo RORO ships which can also carry passengers. They named their series as the “Wilcon”. Sulpicio Lines was not to be outdone and they fielded fourteen and these were dubbed as “Sulpicio Container” or “Sulcon”.

In the same period, Lorenzo Shipping, a former major, also rolled out eleven container ship in a series called “Lorenzo Container” or “Lorcon”. Some of these were former general cargo ships of theirs. Sea Transport Company were also able to field eight with place name of their ports of call followed by “Transport” like “Davao Transport”. None of the other liner shipping companies which followed into containerization like Sweet Lines and Negros Navigation had half a dozen container ships. Instead, they began relying on their new RORO ship acquisitions but that was also done by Sulpicio Lines, William Lines, Aboitiz Shipping and Gothong Lines.

The main effect of the rush to acquire container ships was the slowing down of the acquisition of passenger ships. Actually, this might even had an effect on their purchase of RORO passenger OR ROPAX ships. With the collapse of many shipping companies in the crisis decade of the 1980’s, this resulted in a lack of passenger ships at the end of that decade. But there were many container ships as in about sixty and that fleet pushed many shipping companies in the cargo trade out of business in the 1980’s. Two main factors pushed them into the precipice – the economic crisis which made it hard to acquire ships and the loss of patronage because the paradigm in cargo handling had changed. Break-bulk was now already marginalized and frowned upon. Shippers and traders have had enough of pilferage and goods damaged in transit.

With marginalization, the other cargo liner companies had more difficulty filling up their cargo holds. Voyages became fewer and sailing times ballooned. They became dead duck for the container vans loaded into the fast RORO liners which had fixed schedules. Soon they were on the way out or they had to move to tramper shipping where there are no fixed routes and schedules. During this period cargo liners were even included in the schedule boards of the passenger liners. Their only deficit compared to passenger liners was as cargo ships they had less speed. And since cargo is handled LOLO they also spent more time in the ports.

Now, long-distance break-bulk shipping is almost gone. It is only lively now in the regional routes like the routes originating from Cebu and Zamboanga. In many cases, places and routes they have already evolved into intermodal shipping – the use of trucks which are loaded into short-distance ROROs. In this mode the trucks are the new “containers” or “vessels”. Since that is in competition with container shipping, it is now container shipping which is beginning to be marginalized by the intermodal truck especially if it is supported by the cheap Cargo RORO LCT.

Things change. Always.

The State of Philippine Shipping at the Start of 1990

The start of decades are many times an opportune way to take stock of things. Many countries do that by holding their censuses and we likewise do that. I want to focus on the year 1990 because the decade previous to that was very difficult and dangerous for the country and the economy. That decade was marked by many crises and turmoils and as a result our economy suffered tremendously. Economically and financially, the 1980’s was our second worst decade in the last century after the 1940’s in which World War II occurred. In that war decade, we were subject to invasion, occupation and devastation and our economy therefore shrank.

The crisis decade of the 1980’s was calamitous to our shipping. In terms of damage, it was even worse compared to the 1940’s. After the war, the United States of America (USA) replaced our ships that they requisitioned for the war (and which were lost). Later, Japan also paid reparations for the shipping damages they caused, in terms of new ships and soft loans, among other goods. In the 1980’s, we had none of such free replacements and we were not able to recover the wealth pillaged by the Marcos dictatorship. Our peso also lost so much value that acquiring ships became very difficult (in fact we can’t even buy new ships anymore unlike before). And that difficulty was reflected in the size and quality of our shipping fleet.

At the start of 1990, our biggest shipping company in the previous three decades, the Philippine President Lines or PPL (they also used the company United President Lines or UPL) was practically dead already. They were just acting as shipping agents and they were no longer sailing ships. And then their main rival in size, the Galleon Shipping Corporation which was a crony company was already bankrupt even before the end of the 1980’s. Another company of similar size, the Maritime Company of the Philippines/Maritime Company Overseas, the ocean-going company of Compania Maritima quit shipping at the middle of the 1980’s. These three companies, our biggest, were all in the foreign trade. The ships of these three companies which were mainly chartered from the National Development Corporation or NDC (a government-owned and controlled corporation) were all seized by or returned to the Philippine Government. Those were then sold one by one to international buyers at bargain prices. These three ocean-going companies all had well over 100,000 gross tons of ships in their fleet, a size only a very few reached in all our decades of shipping.

Another shipping company that was once big, notable and well-connected, the American-owned but Philippine-based Luzon Stevedoring Company (LUSTEVECO) also went under. But this has a myriad of reasons aside from the crisis of the early 1980’s and that included the end of the so-called “Parity Rights” (where Americans were given business and commercial rights in the Philippines as if they were Philippine nationals and they can repatriate profits to the USA 100%). This was due to the Laurel-Langley Agreement taking effect in 1974. This company was practically broken up (under pressure, some said) and its assets and ships went to different companies including the Philippine Government which then passed on its assets to its government-owned shipping companies like the Philippine National Oil Company or PNOC.

Our biggest inter-island shipping company for nearly 90 years, the Compania Maritima which has Spanish origins and which started when Spain was still ruling the Philippines was also gone by the mid-1980’s. They quit at the height of the political and financial crisis then when everybody was panicking and many companies were going bankrupt or otherwise illiquid. The owners, the Fernandez brothers who were dual citizens packed up their bags and headed back to Spain (and to think one of them was a former Senator of the Republic!). Compania Maritima was so big – aside from local ahipping they also had an international shipping line (the Maritime Company of the Philippines/Maritime Overseas Company as mentioned before) plus they owned ports and they had stevedoring and forwarding operations.

A host of our smaller shipping lines with foreign routes also went belly up or quit in the 1980’s. These included General Shipping Corporation, Northern Lines Inc., Transocean Transport Corporation, Philippine Ace Shipping Lines, Philippine Transmarine Carriers, Triton Pacific Maritime Corporation, etc. Actually, so many (as in about three dozens) of our big freighters, refrigerated cargo ships and bulk carriers owned by the National Development Corporation that were chartered to Philippine shipping companies doing overseas routes (especially Galleon Shipping Corporation, Philippine President Lines/United President Lines and Maritime Company of the Philippines/Maritime Company Overseas) were broken up in the 1980’s because they were no longer sailing. About the same number were also sold to foreign shipping companies and usually at bargain prices. The decade of the 1980’s witnessed the practical end of our ocean-going fleet and after that we only had half a dozen ships remaining doing foreign routes and those were mainly below 100 meters in length.

Along with Compania Maritima, the graveyard list of our inter-island shipping companies is really long and so I will just enumerate the them. These companies did not even make it out of that horrendous decade for Philippine shipping:

Galaxy Lines (an offspring of Philippine President Lines)
Northern Lines (referring to their inter-island operation)
North Camarines Lumber Company/NCL/NORCAMCO (they changed names)
N & S Lines
Bisayan Land Transport
Newport Shipping
Cardinal Shipping
Rodrigueza Shipping
May-Nilad Shipping
Javellana Shipping
Visayan Transportation
Corominas, Richards Navigation
Royal Line
Veloso Shipping
Visayas Lines
MD Shipping
Tomas del Rio & Co. (formerly Rio y Olabarrieta)
Balabac Navigation

This is far from a complete list as there were many regional shipping companies which went down quietly and it is hard to enumerate them all for many are indistinct.

In the liner front, two old liner companies were no longer carrying passengers at the start of 1990. These were the Escano Lines, a pre-World War II shipping company and Lorenzo Shipping, a spin-off of the old Carlos A. Go Thong & Company. Both decided to just stick to cargo and container shipping. Maybe refleeting for passenger service with liner ships was already too much for them after that crisis decade of the 1980’s.

William Lines and Sulpicio Lines seem to have been the healthiest and definitely the biggest strongest at the start of 1990. Among the shipping companies they were in the best position to take advantage of the fall of erstwhile leader Compania Maritima and the retreat of Lorenzo Shipping and Escano Lines from passenger shipping along with the withdrawal and dissolution of many other various shipping companies in the 1980’s because the two truly had national routes unlike the other liner shipping companies.

William Lines Inc. had nine liners at the start of 1990 and that included two old former FS ships still surviving. Their liners were the Dona Virginia, Manila City, Ozamis City, Cebu City, Tacloban City, Misamis Occidental, Masbate I, Don Jose I and Edward. The last two were ex-FS ships on their last legs. Their overnight ferry was the Iligan City, a former liner then just doing the Cebu-Iligan route. They also had two RORO Cargo ships that can take in passengers and these were the Wilcon I and Wilcon IV. Their other container ships were the Wilcon II, Wilcon III, Wilcon V, Wilcon X and Wilcon XI.

Sulpicio Lines Inc. had eight liners and these were the Filipina Princess, Philippine Princess, Davao Princess, Don Eusebio, Cotabato Princess, Surigao Princess, Cebu Princess and Dona Susana. Their overnight ferries were the Nasipit Princess, Cagayan Princess and Butuan Princess. Their container ships were the Sulpicio Container II, Sulpicio Container III, Sulpicio Container IV, Sulpicio Container V, Sulpicio Container VI, Sulpicio Container VII, Sulpicio Container VIII, Sulpicio Container IX, Sulpicio Container XI, Sulpicio Container XII and Sulpicio Container XIV. Aside from liners, Sulpicio Lines had more ships than William Lines in the other categories (overnight ferries and container ships).

Sweet Lines Inc. had six liners at the start of 1990, the Sweet Baby, Sweet RORO 2, Sweet Glory, the second Sweet Sail and Sweet Hope. Their liner Sweet RORO I was no longer running reliably then and would soon be broken up. Their overnight ships were Sweet Pearl, Sweet Hope, Sweet Marine, Sweet Heart, Sweet Home and the second Sweet Time which sailed Visayas-Mindanao routes. They had a separate cargo-container liner company then which was the Central Shipping Company with the ships Central Mindoro, Central Visayas, Central Cebu and Central Bohol. Another cargo shipping company they had was the Casas Navigation Corporation with the ship Casas Victoria.

Aboitiz Shipping Corporation had three old liners then, the Legazpi, Ormoc and Legaspi 1 (the former Katipunan of Escano Lines) and these were just sailing their two remaining liner routes to Capiz and Leyte. They had four overnight ships, the Elcano, Ramon Aboitiz, the first Aklan, and the ex-FS ship Picket II, which were all old, former liners in their last legs. They also had the Marcelino, an ex-FS ship and Guillermo in the subsidiary Cebu-Bohol Ferry Company. Aboitiz Shipping Corporation had the most container ships locally with twelve: the Aboitiz Superconcarrier I, Aboitiz Superconcarrier II, Aboitiz Superconcarrier III, Aboitiz Megaconcarrier I, Aboitiz Concarrier I, Aboitiz Concarrier II, Aboitiz Concarrier IV, Aboitiz Concarrier VI, Aboitiz Concarrier VIII, Aboitiz Concarrier X, Aboitiz Concarrier XI and Aboitiz Concarrier XII. Container shipping was the strength of Aboitiz Shipping because they concentrated on this when for 14 years they did not buy any liners, the reason their liner fleet wilted.

Negros Navigation Company had five liners sailing then, the Sta. Florentina, Sta. Ana, Don Julio, Don Claudio and Sta. Maria. These were just sailing five routes then – Romblon, Roxas City, Iloilo, Bacolod and Cagayan de Oro. They also had two Iloilo-Bacolod ferries, the cruisers Don Vicente and the Princess of Panay which was a former liner. This shipping company also had four cargo/container ships, the San Sebastian, Connie II, Aphrodite J and Athena J. The last two were local-built cargo ships.

Carlos A. Gothong Lines Inc. (CAGLI) had three liners then, the Our Lady of Fatima, Our Lady of Lourdes and the Our Lady of Guadalupe. Their overnight ships on Visayas-Mindanao routes were the Our Lady of Mt. Carmel, Dona Cristina, Don Calvino, Dona Lili, Don Benjamin and the RORO Cargo ship Our Lady of Hope, their only cargo ship. Together with Sweet Lines and Trans-Asia Shipping Lines, CAGLI was the dominant Visayas-Mindanao regional shipping company at the start of 1990.

Madrigal Shipping Corporation, a very old shipping company with pre-World War II origins was then attempting a comeback in liner shipping with the cruiser liners Madrigal Surigao and Madrigal Tacloban (but these were registered with the Cortes Shipping Company of Zamboanga which I never heard of). With the routes they were sailing they were, in effect, the partial replacement of the abandoned passenger routes of Escano Lines because they sailed the same routes. By this time, Madrigal Shipping had already shorn off their old liners, cargo ships and routes. They, however, had one big cargo ship sailing an overseas route, the Madrigal Integrity.

For brevity, I shall no longer mention all the cargo shipping companies for they are long because they are many. I will just enumerate and describe the cargo companies which were in the more advanced and more important container liner operations (as distinguished from the general cargo ships and those that were in tramper operations). Only three companies without passenger operations were into cargo-container operations at the start of 1990 – Lorenzo Shipping, Escano Lines and Solid Shipping. Among these three, it was Lorenzo Shipping Corporation which was the biggest with a cargo-container fleet that can match the biggest cargo-container shipping companies that had passenger operations. In their fleet they had the Lorcon I, Lorcon IV, Lorcon V, Lorcon VI, Lorcon IX, Lorcon XI, Lorcon XII (the former liner Sweet Grace which was converted into a container ship), Dona Anita, Euney, Dadiangas Express and Cagayan de Oro Express.

Escano Lines had in their fleet the Virgen de la Paz, Foxbat, Kiowa, La Lealtad, Greyhound, Harpoon, Squirrel, Terrier, Wolverine and two or three other freighters. However, only the first four were container liners (liners have fixed routes and schedules) while the rest were general cargo ships in tramping duties (let it be clarified they can substitute for the first four since practically speaking any general cargo ship can also carry container vans). Moreover, Escano Lines normally carry a mixed breakbulk cargo and container vans in their ships. Meanwhile, the Solid Shipping Lines only had the Solid Uno, Solid Dos and Solid Tres in their fleet. I am not sure if their Maligaya was still with them then. They were small because they were just a new shipping company then. However, one which was bigger than Solid Shipping and had container operations before, the Sea Transport Company, also did not make it to the 1980’s. They quit just before the end of the decade and sold their ships to other shipping companies.

From about two dozen passenger liner companies at the start of 1980, we just had a total of seven passenger liner companies left at the start of 1990 and the seventh was the comebacking Madrigal Shipping Company. Because of the fall in the number of shipping operators and with a fast growing population and the economy reviving, the Philippines at the start of 1990 had a severe lack of inter-island passenger ships. In the international front, there was almost no longer ocean-going ships to speak of. Aboitiz Shipping Company and Eastern Shipping Company were practically the only Philippine shipping companies still trying to do foreign routes then but their number of ships might just add to half a dozen and those were much smaller than the ships of Philippine President Lines, Galleon Shipping Company and Maritime Company of the Philippines. That was how precipitous was our drop in shipping in a span of just ten years because of the crisis decade of the 1980’s.

To think conditions in the other fronts were favorable for shipping as there were no budget airlines yet and so air fares were still high. There were also just a few intermodal buses then and there was a general dearth of bus units too. Because of such factors cited there were a lot of passengers for the ships. Maybe this is what some remember that liners then were full to to the brim and there were many well-wishers in ports during departures (and of course many fetchers too during arrivals). There were always tales of passengers being left behind because there were no more tickets left (I have seen that myself). And there were tales of overloading too, of course. The decade of the 1990’s was actually characterized by new great liners having a passenger capacity of over 2,000. Probably, that was the response to our lack of liners and liner shipping companies then.

And that is the story of our shipping in the 1980’s which was reflected at the start of 1990. In a future article, I will discuss in detail our failure in cargo shipping in the same period. Abangan!

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